United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) projects India's economy to grow at 6.4% in 2026

Key facts

• The United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) projected India's economic growth at 6.4% for 2026 and 6.6% for 2027 in its Economic and Social Survey of Asia and the Pacific 2026 report.
• India's growth rate reached 7.4% in 2025, driven by rural economy consumption, goods and services tax rate cuts, and export frontloading.
• Inflation in India is projected to be 4.4% in 2026 and 4.3% in 2027.
• Economies in South and South-West Asia grew by 5.4% in 2025, compared to 5.2% in 2024.
• India attracted the largest share of greenfield FDI in the first three quarters with USD 50 billion, followed by Australia (USD 30 billion), Republic of Korea (USD 25 billion), and Kazakhstan (USD 21 billion).
• India was the world's largest remittance recipient in 2024 with USD 137 billion.
• The United States has levied a 1% tax on all remittances since January 2026.
• The International Renewable Energy Agency (IRENA) estimated 16.6 million green jobs globally, with 1.3 million (8%) in India, 7.3 million (44%) in China, and 2.5 million (15%) in the rest of Asia.
• India's Production Linked Incentive (PLI) scheme provides incentives for domestic manufacturing of solar photovoltaic, batteries, and green hydrogen.